Business transformation has numerous meanings to many companies ranging from tactical to strategic and event-driven to evolutionary. Our definition of business transformation is “Driving competitive advantage in the market through the deployment of strategic changes and ongoing performance improvements across an organization, encompassing people, culture, process and technology.” Hence, transformation is not just about updating your vision, rolling out a new technology solution or improving processes, it requires a holistic view of the building and delivering new capabilities to achieve a competitive advantage.
The six key areas we have identified as essential to successful business transformation are:
It is vital to identify where you stand today to transform your organization. Based on the rapidly changing nature of customer expectations, technological advancements, where you stand can shift in the blink of an eye. As a result, companies must gather and process real-time business and customer insights and effectively leverage analytics to feed both planning and operational activities.
Vision and Strategy
Companies can no longer rely on three- to five-year strategies (or even one-year strategies) to guide their organization, dynamics are changing too rapidly. While you still need a North Star to guide your organization, it can’t be so rigid that you can’t make adjustments based on current and evolving business drivers.
Companies must inherently build agility into their process designs, organization structures, workforce, and technology infrastructures to enable adaptive change. So, each of these elements must work together cohesively to ensure you can continue delivering world-class capabilities as business requirements change.
Agile Value Delivery
Organizations must continuously and incrementally deliver value to the marketplace. Business and IT teams must collaborate closely to provide new business capabilities at an accelerated pace. To do that, your company must leverage agile and modern software delivery techniques that can help you create and bring new products and services to the market quickly.
Without a focus on people, your organization can’t effectively transform, let alone transform with an agile mindset. Companies must build change leaders across their company and establish a culture of change that engages all employees.
Enterprise Portfolio Management
Enterprise Portfolio Management (EPM) has historically received a bad reputation for slowing down progress due to heavy governance and a bureaucratic way of doing things. However, based on the ever-increasing pace of change, EPM is quickly emerging as a strategic business capability required to facilitate end-to-end strategy execution, enable business agility and accelerate value realization — not hinder it.